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Volkswagen Scandal Explained

The auto world has recently been shaken by the Volkswagen scandal. This all started when it came to light that the company had admitted that many of their diesel vehicles had software that helped them cheat on emissions tests. Eventually, this all came to light and the company is being levied with penalties from different countries around the world. Here is a quick explanation to catch you up on this auto controversy...

Emissions

In each of the affected Volkswagen vehicles, there was a software in the vehicle that would sense when the vehicle was being tested. Once this sensor was able to detect that a test was being done, it would trigger systems to reduce overall emissions in the vehicle. Regularly, however, the emissions levels were far over the legal limit. This would give the vehicle increased performance, but also caused a good deal of environmental damage. It wasn’t just a small increase, either. Normal driving conditions showed that the vehicles emitted nearly 40 times as much CO2, an absolutely insane amount.

Cars affected

Many models of Volkswagen cars are not being recalled, depending on their engine and general emissions tests. Currently, there are over half-a-million vehicles in America that are now being recalled by order of the Environmental Protection Agency. On top of that, there are 8.5 million vehicles in Europe that have been ordered to be recalled, as well. This includes Beetles, Jettas, Passats, A3s, Jetta SportWagens, Golfs, and Golf SportWagens. While much of the scandal has revolved around Volkswagen, there are several Audi vehicles, such as the A6 and A7 Quattro, that are being recalled for similar software violations.

How it affects the company

Volkswagen is now in the middle of one of the largest declines that they have ever had. They recently posted their first quarterly loss in 15 years. The company was forced to halt sales of all affected vehicles, which explains a large portion of this decrease, along with mountains of bad press. The stock value is now falling, and their CEO is being forced to step down, while the board has already fired five other executives. On top of this, the company must spend $7.3 billion in order to make the vehicles with illegal software fit within emissions requirements. They may also face an additional $2.2 billion in penalties, as owners o affected diesel cars may be entitled to a $1000 payment, per vehicle, from Volkswagen.